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Cummins Inc. Sells Diesel Exhaust Business

Engine builder will put more emphasis on after-treatment technologies

May 01, 2011

Engine builder Cummins Inc. completed the sale of its exhaust business to Global Tube for an undisclosed price, indicating the decision allows it to put more emphasis and resources available to developing emissions technologies.

The value of the sale has not been announced.

The sale was revealed earlier this year, and involves several Cummings plants in Wisconsin (Stoughton, Arcadia, Black River Falls, and Viroqua), as well as in Scoresby, Australia, and Daman, India.

Exhaust systems had been a product line for Cummins Emission Solutions (CES), which manufactures after-treatment products and systems that control diesel engine emissions. Cummins has said the exhaust business was not a core part of its after-treatment business.

In addition, Cummins emphasized that the sale will allow it to put greater emphasis and resources toward “products that are a critical part of Cummins’ growth strategy. It said tightening global emission standards provide growth opportunities in the development and deployment of after-treatment technology, such as Diesel Particulate Filter and Selective Catalytic Reduction systems that meet the U.S. Environmental Protection Agency’s 2010 emissions regulations for on-highway diesel engines.

Global Tube is financed by Chicago-based investment group Wind Point Partners.